Brazilian Supermarket Invests in E-commerce

The first virtual Brazilian supermarket, the Pão de Açúcar Delivery is about to
complete three years online, with a total of US$ 2,000,000 in investments.

According to the group’s estimates, this year there will be a major leap in
sales figures on the Internet, with the creation of a database on
customers buying habits to guide decisions on promotions, products and services, and consumer interactivity.

The Pão de Açúcar Delivery has about 100,000 registered customers for sales
through the phone, Internet and CD-ROM catalogs. There are 9,000 items offered on the Internet, including fruits, vegetables, fresh meat, and non-perishable goods, chosen from 22,000
products normally sold by the supermarket.

Products sold over the Internet are selected based on researches to identify consumer needs. The next criterion is the
analysis of the goods turnover, to offer assistance according to
vendors. In this new phase of investments on the Net, the Grupo Pão de Açúcar is studying the integration to the ECR (Efficient Consumer Response)
concept that seeks to automatically replenish supplies
as goods are sold.

When it was first launched back in 1996, the site was responsible for 4
percent of the delivery system. By 1997 the site reached 8 percent
and, last year, 16 percent. Now the system delivers goods in 24 hours in
some Brazilian cities, including São Paulo, Rio de Janeiro and Brasília.